Former IndyMac Executives Settle Class-Action Suit
The former leaders of failed IndyMac Bancorp, including ex-Chief Executive Michael Perry, have agreed to settle a class-action securities lawsuit stemming from the bank-holding company's collapse four years ago, the Wall Street Journal today. In a settlement outlined in U.S. District Court in Los Angeles, IndyMac's insurers will pay $6.5 million in cash to investors who had sued the company's leaders for securities fraud as the nation's housing bubble collapsed in the spring of 2008. IndyMac shareholders sued Perry and former finance chief Scott Keys in June 2008 over allegations they had misled investors about the failed mortgage lender's deteriorating financial condition. The following month federal bank regulators seized and closed IndyMac's thrift, IndyMac Bank.